US Drillers Add Oil and Gas Rigs for First Time in 10 Weeks
U.S. energy firms this week added oil and natural gas rigs for...
U.S. energy firms this week added oil and natural gas rigs for the first time in 10 weeks, due to the biggest weekly increase in gas rigs since October 2016, energy services firm Baker Hughes Co said in its closely followed report on July 7.
The total oil and gas rig count, an early indicator of future output, rose six to 680 in the week to July 7. Despite this week's rig increase, Baker Hughes said the total count was still down 72 rigs, or 10%, below this time last year.
U.S. oil rigs fell five to 540 this week, their lowest since April 2022, while gas rigs rose 11 to 135, their highest since early June.
U.S. stocks close lower after jobs data; Dow off 2% for the week
U.S. stocks finished lower on Friday, with the S&P 500 sliding for a third-straight day while...
U.S. stocks finished lower on Friday, with the S&P 500 sliding for a third-straight day while all three major indexes kicked off the second half of 2023 with a weekly loss. The S&P 500, fell by 12.55 points, or 0.3%, to 4,399.04, bringing its weekly loss to 1.2%, its biggest since the week before last, according to preliminary closing data from FactSet. The Nasdaq Composite shed 18.33 points, or 0.1%, to 13,660.72 while falling 0.9% on the week. The Dow Jones Industrial Averageretreated by 187.25 points, or 0.6%, to 33,735.01, falling 2% for the week. Energy stocks were a notable standout on Friday, with the S&P 500 energy sector gaining more than 2% as crude-oil prices saw their biggest weekly jump in three months. Small-cap stocks also outperformed on Friday, with the Russell 2000 rising 24.67 points, or 1.3%, to 1,866.90, although it still fell 1.1% this week. Investors digested the June jobs report from the Department of Labor on Friday, which showed that the pace of job creation decelerated last month, even as wage growth, a key inflation input, remained stubbornly elevated.
The Biden administration on Friday said that the U.S. will supply cluster munitions to Ukraine in a controversial move defended by a top official.Jake Sullivan, President Joe Biden’s national security adviser, told reporters at the White House that the Ukrainians need the weapons to defend their country in the conflict with Russia.
“We will not leave Ukraine defenseless at any point in this conflict,” he said.
What are cluster munitions?These weapons, sometimes also called cluster bombs, open in the air and send down smaller bombs that scatter across landscapes.
They are controversial because those “bomblets” disperse over a large area. And the Biden administration’s decision comes amid concern that those smaller bombs can cause civilian casualties.
Lower oil prices on the horizon, Morgan Stanley predicts
Morgan Stanley has revised its Brent crude price forecasts down...
Morgan Stanley has revised its Brent crude price forecasts down to $75 per barrel in the third quarter and $70 per barrel in the fourth quarter and sees prices trading in the $70-$80 per barrel range in 2024. The bank expects the market to shift to a surplus in the first half of next year, as non-OPEC supply increases could outpace demand growth.
Energy stocks remain under pressure, tracking weaker broader index futures and recent downward trends amid expectations of further Fed tightening. Nonfarm payrolls for June increased 209,000, while the unemployment rate was 3.6%, the Labor Department reported this morning. The figure missed expectations of +240,000. Futures erased some losses on this news, which offers some dovish readthroughs for the Fed, though hike expectations remain the likely outcome for at least the next meeting. Sector news flow is light.
Oil prices rose on Friday and were on track for their second straight weekly gain, as resilient demand resulted in a larger-than-expected fall in U.S. oil stockpiles, offsetting fears of higher U.S. interest rates. U.S. crude stocks fell more than expected and gasoline inventories posted a large draw, the EIA said on Thursday. Top oil exporters Saudi Arabia and Russia this week have also announced fresh output cuts bringing total cuts by OPEC and its allies to around five million bpd, equating to 5% of global oil demand.
Natural gas futures are higher by a penny,inching higher alongside oil prices
